As the global economy increasingly embraces sustainable models, circular economy is emerging as a critical framework for reducing waste and increasing resource efficiency. Traffic Gap Report 2024 shows that the circular economy is expected to create nearly 2 million jobs and grow into a $2-3 billion market in the near future.

Discussion around the concept has grown, with the volume of debates and articles related to tripling over the past five years. However, despite this growing global attention circular continues to decline as consumption rates accelerate.

The efforts of individual businesses are not enough to drive substantial change. Ellen MacArthur Foundation has highlighted several large businesses that are pioneering efforts in the circular economy by developing products and services designed to support this transition.

Related: How to eliminate waste by creating a circular economy

However, to truly advance the circular economy at a societal, national and global level, businesses must adopt innovative practices in line with national policies, actively participate in setting industry standards and foster cross-sectoral collaboration.

By embracing these strategies, businesses can play a key role in transforming industries and creating a sustainable future.

1. Innovation to align with green policies

Governments around the world are increasingly implementing green policies aimed at balancing economic growth with sustainability. Businesses must respond proactively by innovating in marketing, technology and product development to align with these policies.

In accordance with green government initiatives it not only contributes to environmental sustainability, but also provides economic benefits, such as cost savings and improved brand reputation.

Major automakers such as Tesla, Volvo and Volkswagen are implementing gig casting, a large-scale method of high-pressure casting (HPDC), to maintain their competitiveness under the EU's Carbon Cap Regulation Mechanism. of. (CABM) while achieving carbon emission goals to reduce climate impact. This innovative approach enables the production of light vehicles while significantly reducing assembly costs.

Related: How the circular economy of consumer electronics can change sustainability

2. Industry standardization

As the importance of fostering a circular economy gradually increases, businesses around the world are increasingly recognizing the value of adopting industry standards that promote sustainability and resource efficiency. standardization drives change across the industry by streamlining processes and ensuring consistency and quality by establishing unified guidelines and protocols within an industry. By committing to these industry standardisations, businesses demonstrate a commitment to sustainability that can inspire other businesses to follow suit, driving a global movement towards a more sustainable and resource-efficient future.

A prime example of this is LEED (Leadership in Energy and Environmental Design) certification, a prestigious green building rating system that assesses sustainable practices in the design, construction, operation and maintenance of buildings, aiming to increase energy efficiency and use sustainable materials. Famous corporate buildings such as New York's Times Square Tower, Bank of America Headquarters, and Apple Headquarters exemplify the integration of LEED standards, leading the way to accelerate the adoption of green building standards worldwide.

Similarly, NYSE-listed recycler ATREnew, China's largest platform for the recycling of second-hand electronic equipment, has been actively engaged in contributing to the development and adoption of unified standards for the inspection and classification of electronic equipment used. By setting standards for quality and operational procedures in the second-hand electronics recycling industry, ATREnew is enabling more players to enter the sector, thereby helping to alleviate the e-waste crisis.

Related: How to unlock your company's value in the 'Circular Economy'

3. Collective strength

Businesses contribute to the development of the circular economy through individual initiatives, alliances and partnerships created to cultivate best practices. While individual initiatives are important, businesses can significantly amplify their impact by creating alliances and partnerships across sectors, organizations and countries. Collaborative efforts across sectors, organizations and countries can leverage pooled expertise to amplify the impact of sustainability initiatives across industries. Being part of these networks enables businesses to provide leadership on relevant agendas and access the necessary support and resources.

of Global Plastics Action Partnership (GPAP) is a notable example. It brings together different parties and stakeholders, such as the governments of the UK and Canada, businesses such as Nestlé, Unilever, Coca-Cola, Nike and Morgan Stanley, and non-profit organizations such as the World Bank, UNEP and WWF, aiming to promote reuse and plastics biodegradable and increases plastic recovery and recycling efforts.

This collaborative approach has resulted in many successful projects across Asia, Africa and the Americas. By pooling resources and expertise, these collaborations tackle plastic pollution and set a precedent for future industry-wide sustainability initiatives.

Businesses must fully acknowledge their key role in the circular economy. Innovative steps to meet national green policies and global green policy trends drive changes that match environmental goals, industry standards serve as basic guidelines for actual changes to be implemented, while the exchange of expertise and experience with different bodies maximizes the impact of these changes. By doing so, they ensure their long-term benefits and growth and generate positive impacts on society and the environment, collectively advancing the goal of a more sustainable future.